In the lead-up to an impending election, it was seen to be beneficial to have the Labor Party state a clear policy position in relation to the future of the FBT Statutory Formula Method for employer-provided motor vehicles.
To progress this, industry associations, including the Australian Finance Conference (AFC), Australian Fleet Lessors Association (AFLA) and the National Automotive Leasing & Salary Packaging Association (NALSPA), were provided an opportunity to meet with the Shadow Treasurer, Chris Bowen, to sound out the Labor Party’s position and to highlight the public interest benefits to support a position of no change.
The outcomes of this discussion were reinforced with the Leader of the Opposition, Bill Shorten. In response, Mr Shorten has given a clear written commitment designed to remove uncertainty and avoid an outcome similar to the lead-up to the 2013 election.
In summary, should a Shorten Government be elected, it
Mr Shorten also emphasised that Labor values the important economic contribution of salary packagers and that of their NFP and corporate sector customers. The outcome sees parity between the Labor policy and the current Turnbull Government; no change to the FBT SFM.